President Trump Unveils "Trump Accounts" Program to Boost Children's Long-Term Savings

President Trump introduced "Trump Accounts" under the One Big Beautiful Bill Act, depositing $1,000 into investment accounts for children born between 2025 and 2028.

Michael and Susan Dell pledged $6.25 billion, providing $250 seed money for 25 million children in lower-income areas to encourage early savings and wealth-building.

Funds are invested in U.S. equity index funds by the Treasury Department's agent, locked until age 18, with a $1,000 investment potentially growing to $5,600.

At 18, accounts convert to IRAs, allowing withdrawals for education, a first home, or business startup, though taxes and penalties may reduce the after-tax value.

Families can contribute up to $5,000 annually, with employers adding $2,500, to these tax-deferred accounts, with full program availability expected by mid-2026.